APS 110 Capital Adequacy

The Australian Prudential Regulation Authority issued Prudential Standard APS 110 to require authorised deposit-taking institutions to maintain adequate capital buffers against risks. The standard mandates that boards ensure appropriate capital levels through an Internal Capital Adequacy Assessment Process while adhering to minimum risk-based ratios and leverage requirements. It further imposes strict constraints on capital distributions and requires prior approval for planned capital reductions to ensure financial resilience.

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Australia

Australian Prudential Regulation Authority

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